increased investments and listing on nasdaq omx first north

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Interim Report (1 January – 30 June 2014) Presenter: CEO, Gustav Hultgren DDM Holding AG (Nasdaq OMX First North: DDM) and DDM Treasury Sweden AB (publ) (NGM: DDM1) Increased investments and listing on Nasdaq OMX First North This presentation contains forward-looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read our our company description for a better understanding of these risks and uncertainties. © DDM Holding AG 2014

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Page 1: Increased investments and listing on Nasdaq OMX First North

Interim Report (1 January – 30 June 2014) Presenter: CEO, Gustav Hultgren

DDM Holding AG (Nasdaq OMX First North: DDM) and

DDM Treasury Sweden AB (publ) (NGM: DDM1)

Increased investments and listing on Nasdaq OMX First North

STRICTLY CONFIDENTIAL

This presentation contains forward-looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read our our company description for a better understanding of these risks and uncertainties. © DDM Holding AG 2014

Page 2: Increased investments and listing on Nasdaq OMX First North

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DDM A multinational investor and manager of distressed assets

Introduction 28 August 2014

DDM has since 7 years established

strong relationships with

international banks and financial

institutions in Europe to acquire

distressed asset portfolios.

With the Group’s focus on long-

term relations with customers, as

well as debtors, DDM is the

preferred partner to provide a

sustainable financial solution.

High growth opportunities

Unique, competitive business model

Strong financial track record

Highly experienced and committed management

(25+ years)

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DDM Building a strong and sustainable company

28 August 2014

2013- Leverage on the solid platform established Shift to institutional financing and establish an efficient, long-term, capital structure First senior secured bond issue completed in H1 2013 New share issue, listed on Nasdaq OM First North as of 5 August 2014

2007-2008 Replicating / improving a business model from Western Europe New markets / New sellers / New agencies First investments First external funding July 2008

Phase 1

Start up

2009-2012 Build team, process, IT system Leverage on data from initial investments Funding from family offices, hedge funds and high-net-worth individuals

Phase 2

Build up

Phase 3

Scale up

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DDM Equity issue and listing provides opportunities

28 August 2014

Proceeds from the issue of new shares will mainly be invested in distressed assets and to secure a more stable, secure and long-term capital structure Costs for equity issue, listing and related activities will be included in the Q3 report

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Expansion and penetration in Eastern Europe Geographical focus

Geographic scope: Eastern Europe

= DDM’s largest markets at present (Russia and Romania)

= Geographic focus (Eastern Europe)

= Company headquarters in Zug, Switzerland (tax efficient, close to key markets)

28 August 2014

63 31

5

1

Romania

Russia

Slovenia

Other

Strong cash flow from Romania, %

Net cash flow Jan-Jun 2014: EUR 3.8M Total net collections Jan-Jun 2014: EUR 5.7M (4.1)

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The business model Knowledge builds our success

Acquisition of

distressed assetsCollection of debt through 3rd party

Acquisition and collection of distressed assets

Asset management

Value chain focus Invest, collect, report, repeat

Economies of scale

Operational flexibility

28 August 2014

Distressed assets

Consumer and corporate

assets

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Experience and flexibility DDM

Based in Zug, Switzerland and currently employs 18 FTE’s

First class team with direct industry and geographical experience

The DDM’s organization is geared for growth

28 August 2014

CEO Gustav Hultgren

Finance Fredrik Olsson*

IT Colin Jones

Operations Alexander Zwinger

Origination Dmitry Zadvornov

Transactions Konstantins Batrakovs

Portfolio Managers Analytics

Page 8: Increased investments and listing on Nasdaq OMX First North

DDM Invest X AG

DDM Invest IV AG

DDM Invest III AG

8

Group overview DDM

28 August 2014

DDM Holding AG Switzerland

DDM Group AG Switzerland

DDM Invest II AG

DDM Investment SPV’s DDM Treasury Sweden

AB (publ) Sweden

DDM Invest XX AG Switzerland

100%

100% 100%

100%

Management, staff, IP, technology

Issuer Bond loan 2013

Listed on Nasdaq OMX First North

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Operational highlights Key developments

Introduction First six months 2014 28 August 2014

JANUARY – JUNE 2014

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Operational highlights Key developments

Market incl investments

Russia, largest by book value

Romania, strong cash flow

Slovenia, new market

Other markets, diversification

IPO for investments and improved capital structure

New CFO, Mr. Fredrik Olsson. Will take on the position as of 1 September

28 August 2014

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Financial highlights, January-June Key developments

DDM

Investments in portfolios, Jan-Jun 2014: EUR 7.1M (0.4) Full-year 2013: EUR 16.1M

Total net collection, Jan-Jun 2014: EUR 5.7M (4.1) Full-year 2013 : EUR 9.6M

Operating earnings (EBIT), Jan-Jun 2014 : EUR 1.5M (Neg) Full-year 2013: Neg.

EBIT margin: 26.5% (Neg) Full-year 2013: Neg

Accounting principles and IFRS migration, step by step

After the period: New issue and listing on Nasdaq OMX First North, costs to be included in Q3

Number of total shares: 7,100,000

28 August 2014

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DDM decides when and how to invest Portfolio investments

Investments in distressed asset portfolios (€m)

Established relationships with sellers in the consumer and commercial credit industry.

DDM has acquired 70 portfolios for an aggregate of EUR 75M at 30 June 2014

Primarily, DDM targets the credit card and point of sale loans segment

28 August 2014

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Continuing to grow Summary

Competitive business model

Strong network and longstanding relations with sellers

Outsourcing of debt collection activities – to top-tier agencies under the guidance of DDM

Funding structure

Bond, equity and other resources

Accounting

DDM to report according to IFRS as of 2015

Management

More than 50 years of combined industry experience

New CFO appointed

Strategy to grow and other key focus areas H2 2014

Increasing volume of distressed assets being offered to investors

Geographic diversification

28 August 2014

Summary Introduction First six months 2014

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Q&A Thank you for your attention

Third quarter interim report expected to be published on 28 November 2014

DDM Holding AG Schochenmühlestrasse 4

CH-6340 Baar Switzerland

Telephone: +41 41 766 1420 [email protected]